Mairead Farrell (Galway West, Sinn Fein) | Oireachtas source

I commend my colleague, Deputy Ó Broin, on bringing forward this Bill. It is timely and necessary. Government policy continues to drive up the price of rents. They are now in excess of anything anyone can afford, as are house prices. In many senses, it seems to be mission accomplished for the Government.

In my home county of Galway, rents have increased by 6% on last year, while rent for a double room in Galway city has increased by a massive 16%. The rent pressure zones, RPZs, the Minister's predecessor introduced were always likely to fail and now we have ample evidence for this. They were supposed to limit increases in certain areas to 4% a year but, as Threshold CEO John-Mark McCafferty pointed out, Galway city is a designated RPZ and rents for double rooms have increased 16% over the past year. Mr. McCafferty said this "is yet more evidence that the RPZs are not being adhered to’.

Deputy Ó Broin's Bill seeks to amend section 19 of the Residential Tenancies Act by capping the current rent on new and existing tenancies for three years. In Galway city, not far from where I live in Mervue, a build-to-rent apartment block is being developed. We know these funds are investing in property to make the maximum return, which means more sky-high rents for tenants and pricing local people out of the market. The Minister for Finance decided to exempt these funds from the 10% stamp duty charge that was supposed to deter them from these kinds of bulk purchases. This was done against the advice of his top civil servants and will mean more bulk purchases by investment funds and ever-climbing rents for ordinary working people in Galway city who cannot afford to live or buy in the city. That is not good enough. Policy after policy by this Government excludes people in Galway from renting and buying in their local areas. We saw the same disregard for the former top civil servants of the Department of Public Expenditure and Reform, the ESRI and the Central Bank, who said the shared equity scheme would push up prices. It is not good enough. We need action now. This is a good Bill and should be supported by Government.

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